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There are two ways to categorize most bonuses: discretionary (not guaranteed) or nondiscretionary (guaranteed as shown in your employment contract). Companies often use bonuses as a way to increase productivity, improve employee retention, thank employees for their efforts and create a positive work environment.
A good bonus percentage for an office position is 10-20% of the base salary. Some Manager and Executive positions may offer a higher cash bonus, however this is less common. Some employers will not offer a cash bonus, and will offer a higher salary or other compensation \u2013 like stock options \u2013 instead.
3. What Types of Bonuses Are There, and How Do They Work? Annual Bonus. An annual bonus is usually based on overall company performance. ... Spot Bonus. ... Signing Bonus. ... Retention Bonus. ... Referral Bonus. ... Holiday Bonus. ... Commission.
Employees who earn nationally recognized certification related to their job but not required by their job description will be paid a certification bonus per SHS policy.